The list goes on and on and on! If those with high incomes do not watch out, they can be spent into the poor house before they can blink twice!

Why are those with high incomes at the most risk? Well, people generally know that these individuals earn a high income, so they are sought out by those with something to sell. If you want to make some money, you might as well go to those with some to spend. Preferably a LOT to spend.

In the book The Millionaire Next Door by Thomas J. Stanley, Stanley describes persons as PAWs and UAWs (Prodigous Accumulators of Wealth – PAWs or Under Accumulators of Wealth – UAWs). PAWs have a net worth equal to 10X their annual income. UAWs have a net worth equal to less than 3X their annual income.

As Stanley performed analysis on PAWs and UAWs, he noticed a very clear distinction about UAWs. They had a stated or unstated need to "keep up with the Jones's". As a result, they spent more money than they made, and although they might have $300,000 in the bank, their peers have over $2,000,000 in the bank. Why? The UAWs allowed the hooks of "keeping up with the Jones's" to sink in!

If you are a high income earner, beware the hooks! Ensure that you understand that YOU are in control of your finances – not the slick salesman or your broke friends. How much could you leave to your children if you removed some of the "hooks"? How much could you spend on things you really liked if you removed some of the "hooks"? How much could you give away to causes you deeply believe in if you removed some of the "hooks"?

If you are not a high income earner, avoid the "keep up with the Jones's" mentality and pursue financial freedom instead. If you keep saving, every single month for years, you will have a high income. You can do this!